Final extension quote 55% higher than estimate - help

Just got the final quote from registered master builder we 'selected' on basis of confirmed estimate based on the builder seeing the place we're extending and seeing the approved council plans.

Price has leapt from 244K to 380K in a few months.

I can understand about 30K of the difference due to different footings needed (more steel), aircons and complex plumbing... but the estimates for things that should have stayed similar such as cladding, painting, internal walling, demolition etc have all gone up heaps too.

Lesson one, do not kick tenant out without cast iron quote!

Now questions...
Is this usual?
WTF?
Is it worth going back to builders who gave us similar, but slightly higher, initial estimates for actual contracts... or are they all going to come back similar?
Is there anyone I can complain to (not to seek legal redress but just as an ethical complaint)?
Now what to do? My first inclination is to re-let the place for six months to provide breathing room to get alternative quotes and re-do all maths.

Gaaaaah. BTW, the job is extension of 2br Vic single front brick terrace to two storeys, 4 bed, 3 bath. Site access is problematic so a lot of the work will need to be done by hand.
 
That's a big difference, maybe the builder suddenly got very busy and no longer needs your job?

You need a few more solid quotes to know what the real market price for your job is.
ASAP so you may be able to start soon without getting tennants in again.

However, if you think the first builders quote may be realistic and he was way undervalued on his estimate, maybe you should get tennants in if you won't proceed with building right away.
 
re-doing sums

In absolute terms we could afford it but would need to re-assess if it was worth doing in terms of value added as it is not a PPOR.

The house next door is having a reno (one less bathroom, one less bedroom) for 280K with work already underway and due to come in more or less on budget.

So... at first glance it looks to me as if we could still do better than this quote.
 
In absolute terms we could afford it but would need to re-assess if it was worth doing in terms of value added as it is not a PPOR.

The house next door is having a reno (one less bathroom, one less bedroom) for 280K with work already underway and due to come in more or less on budget.

So... at first glance it looks to me as if we could still do better than this quote.

Sounds like the real quote should have been $280k + extra bedroom + extra bathroom - so the extra bedroom & bathroom are costing you $100k. What level of inclusions have you been quoted on?
 
I'm always blown away by the cost of extensions. I'm not having a go at the OP's choice to extend as I also investigated this option recently, but you can buy a 3 bedroom house and land in the outskirts of capital cities for that price. Have building materials and labour costs risen to unrealistic, unsustainable levels? Where else in the world are building costs so high? Surely it'll get to the point where it will make no sense to build or extend.
 
the address

Yep, also having second thoughts now, obviously...

First decided to reno because footings at back are shot so might as well extend rather than just fix, which would be pricey for an old school layout, and not much more rent achievable without extra bedrooms.

Love the location (West Melbourne) and think it has room to ride up, but really, it's as if builders and tradies read the location and double their prices, ie quote the job at the difference in value before and after rather than anything relating to real costs.
 
Why not just buy a second IP for $380k?

Surely another IP rented for $300 a week will work out better financially than spending almost $400k that will fetch an extra $150 a week.
 
Hi PV,

A leopard never changes its spots.

I would stay away from this builder.

If a person could back out from his previous words without adequate reasoning and communication, he would likely repeat the same again in the future. This type of person normally puts their interest first, everything else is last.

A separation before a wedding is painful, but it won't cost you a half fortune.

Good luck :)
 
How much would it cost to demolish/rebuild a brand new equivalent 4 BR house on that site?

That may be an option in that price range.
 
Also I would suggest you get a valuer to do a before (current market value) and after (off the plan current market) value. You may find that you could be kissing $100k plus in equity goodbye and that it works out cheaper to sell and buy a bigger recently renovated place.

Also how much does the quote work out to on a $/m2 basis?

You could be spending $2,800/m2 to add $1,800/m2 in value to to an existing structure that currently adds $800/m2 to the land value.


cheers

RightValue
 
Don't rush it...

I'm also in the process of organizing a backyard extension to add a couple of bedrooms & living area.

Having obtained quote from more than 15 builders, the highest is $170,000 and lowest $75,000. I found 3 good builders i.e. more than 10 year experience & clean history under current license. They quoted ~$80,000 on average.

It's probably better for you to walk away from that builder...he seems very unreliable. Try to obtain more quotes...soon or later you'll come across the right builder. Also it's important to check their license details i.e. just Google "builder license check" and the link will pop up. You can find out how long they've been operating and if there's any tribunal cases.

Last year, I paid a builder more than $10,000 to fix up termite damage. I took his word for it without seeking a second quote...and it's a expensive lesson. He did such a "crappy" job & claim to have finished but in fact did very little. We wouldn't have found out if my partner did not climb underneath the house & check. Even with roof insulation, his boys laid "half" of the house only, around areas where it is visible. My electrician told me when he climbed up to fix a wiring... I had to "threaten" of reporting him before he came over and fixed it up...

There are many horror stories working with builders... So don't rush it...take your time to select the right builder...

Hope you find the information useful... :D
Lei
 
I'm also in the process of organizing a backyard extension to add a couple of bedrooms & living area.

Having obtained quote from more than 15 builders, the highest is $170,000 and lowest $75,000. I found 3 good builders i.e. more than 10 year experience & clean history under current license. They quoted ~$80,000 on average.

Are you serious, you got more than 15 quotes?
Now I know why my builder needs to charge so much.....
He's running around all day doing quotes for jobs which has already been quoted 15 times by others before him.
Where's the consideration?
 
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